{"product_id":"bankruptcy-and-insolvency-accounting-volume-1-isbn-9780471787617","title":"Bankruptcy and Insolvency Accounting, Volume 1","description":"Accountants and financial managers are often the first professionals to realize that a financial problem exists within a corporation but must be familiar with the various alternatives available to clients before they can offer solutions. Completely updated, \u003ci\u003eBankruptcy and Insolvency Accounting, Seventh Edition, Volume 1\u003c\/i\u003e provides detailed information on SOP 90-7 and FASB statements 141, 142, and 144 and revisions made in CSSR 93-1 by CSSR 03-1. The process of corporate restructuring is thoroughly described for controllers, CEOs, CFOs and CPAs with small businesses as clients. \u003cp\u003ePreface xxxv\u003c\/p\u003e \u003cp\u003eAcknowledgments xxxix\u003c\/p\u003e \u003cp\u003eAbout the Author xli\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART ONE BANKRUPTCY AND INSOLVENCY ENVIRONMENT 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Accountant’s and Financial Advisor’s Role in Perspective, 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Introduction, 3\u003c\/p\u003e \u003cp\u003e1.2 Scope of Coverage, 4\u003c\/p\u003e \u003cp\u003eAccounting Services, 5\u003c\/p\u003e \u003cp\u003e1.3 Need for Financial Advisor’s Services, 5\u003c\/p\u003e \u003cp\u003e1.4 Financial Advisor Defined, 6\u003c\/p\u003e \u003cp\u003eTopical Overview, 7\u003c\/p\u003e \u003cp\u003e1.5 Economic Causes of Business Failure, 7\u003c\/p\u003e \u003cp\u003e1.6 Business Turnaround, 7\u003c\/p\u003e \u003cp\u003e1.7 Alternatives Available to a Financially Troubled Business, 7\u003c\/p\u003e \u003cp\u003e1.8 Comparison of Title 11 of the United States Code with the Bankruptcy Act, 11\u003c\/p\u003e \u003cp\u003e1.9 Retention of the Financial Advisor and Fees, 13\u003c\/p\u003e \u003cp\u003e1.10 Accounting Services, 14\u003c\/p\u003e \u003cp\u003e1.11 Special Investigation and Financial Reporting, 14\u003c\/p\u003e \u003cp\u003e1.12 Tax Awareness, 14\u003c\/p\u003e \u003cp\u003eResponsibilities of Independent Accountant, 15\u003c\/p\u003e \u003cp\u003e1.13 Responsibilities in General, 15\u003c\/p\u003e \u003cp\u003e1.14 Observation of Business Decline, 15\u003c\/p\u003e \u003cp\u003e1.15 Responsibility to Client, 16\u003c\/p\u003e \u003cp\u003e1.16 Advice on Selection of Attorneys, 17\u003c\/p\u003e \u003cp\u003e1.17 Other Steps to “Manage” the Proceedings, 18\u003c\/p\u003e \u003cp\u003eProfessional Certification, 18\u003c\/p\u003e \u003cp\u003e1.18 Certified Insolvency and Restructuring Advisors, 18\u003c\/p\u003e \u003cp\u003e1.19 Certification in Distressed Business Valuation, 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Economic Causes of Business Failures, 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Introduction, 21\u003c\/p\u003e \u003cp\u003eDefinition of Successful and Unsuccessful Business, 21\u003c\/p\u003e \u003cp\u003e2.2 Failure Defined, 21\u003c\/p\u003e \u003cp\u003e2.3 Business Failure Statistics, 23\u003c\/p\u003e \u003cp\u003eCauses of Financial Difficulty, 24\u003c\/p\u003e \u003cp\u003e2.4 Introduction, 24\u003c\/p\u003e \u003cp\u003e2.5 Size of Business Failures, 26\u003c\/p\u003e \u003cp\u003e2.6 Geographic Distribution of Business Failures, 29\u003c\/p\u003e \u003cp\u003e2.7 Age of Business Failures, 30\u003c\/p\u003e \u003cp\u003e2.8 Business Failures and Economic Conditions, 30\u003c\/p\u003e \u003cp\u003e2.9 Characteristics of the Economic System, 33\u003c\/p\u003e \u003cp\u003e2.10 Casualties, 34\u003c\/p\u003e \u003cp\u003e2.11 Inside Underlying Causes, 34\u003c\/p\u003e \u003cp\u003e2.12 Dishonesty and Fraud: Planned Bankruptcies, Sham, 42\u003c\/p\u003e \u003cp\u003e2.13 Other External Causes, 42\u003c\/p\u003e \u003cp\u003eStages of Financial Failure, 43\u003c\/p\u003e \u003cp\u003e2.14 Introduction, 43\u003c\/p\u003e \u003cp\u003e2.15 Period of Incubation, 44\u003c\/p\u003e \u003cp\u003e2.16 Cash Shortage, 45\u003c\/p\u003e \u003cp\u003e2.17 Financial or Commercial Insolvency (Equity Definition), 45\u003c\/p\u003e \u003cp\u003e2.18 Total Insolvency (Bankruptcy Definition), 45\u003c\/p\u003e \u003cp\u003e2.19 Bankruptcy or Out-of-Court Workout, 45\u003c\/p\u003e \u003cp\u003eDetection of Failure Tendencies, 46\u003c\/p\u003e \u003cp\u003e2.20 Introduction, 46\u003c\/p\u003e \u003cp\u003e2.21 Trend Analysis, 46\u003c\/p\u003e \u003cp\u003e2.22 Analysis of Accounting Measures, 48\u003c\/p\u003e \u003cp\u003e2.23 Analysis of Management, 64\u003c\/p\u003e \u003cp\u003e2.24 Importance of Forecasts, 64\u003c\/p\u003e \u003cp\u003e2.25 Other Factors, 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART TWO LEGAL ASPECTS OF BANKRUPTCY AND INSOLVENCY PROCEEDINGS 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Turnaround Process, 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Objectives, 69\u003c\/p\u003e \u003cp\u003eStages of Turnaround Process, 69\u003c\/p\u003e \u003cp\u003e3.2 Introduction, 69\u003c\/p\u003e \u003cp\u003e3.3 Stage 1: Management Change, 71\u003c\/p\u003e \u003cp\u003e3.4 Stage 2: Situation Analysis, 72 Competitive Ability, 77\u003c\/p\u003e \u003cp\u003e3.5 Stage 3: Design and Selection of Turnaround Strategy, 78\u003c\/p\u003e \u003cp\u003e3.6 Stage 4: Emergency Action Stage, 81\u003c\/p\u003e \u003cp\u003e3.7 Stage 5: Business Restructuring Stage, 87\u003c\/p\u003e \u003cp\u003e3.8 Stage 6: Return-to-Normal Stage, 89\u003c\/p\u003e \u003cp\u003eCharacteristics of Effective Turnaround Managers, 90\u003c\/p\u003e \u003cp\u003e3.9 Introduction, 90\u003c\/p\u003e \u003cp\u003e3.10 Organizational Leader, 91\u003c\/p\u003e \u003cp\u003e3.11 Ability to Develop and Implement Strategy, 91\u003c\/p\u003e \u003cp\u003e3.12 Entrepreneurial Instincts, 91\u003c\/p\u003e \u003cp\u003e3.13 “Hands-On” Operating Experience, 91\u003c\/p\u003e \u003cp\u003e3.14 Effective Negotiating Skills, 92\u003c\/p\u003e \u003cp\u003e3.15 Good Interviewing Skills, 92\u003c\/p\u003e \u003cp\u003e3.16 Action Orientation, 92\u003c\/p\u003e \u003cp\u003e3.17 Trustworthiness and Fairness, 93\u003c\/p\u003e \u003cp\u003eTechniques Used in Business Turnarounds, 94\u003c\/p\u003e \u003cp\u003e3.18 Introduction, 94\u003c\/p\u003e \u003cp\u003e3.19 Lean Manufacturing, 94\u003c\/p\u003e \u003cp\u003e3.20 Activity-Based Costing, 98\u003c\/p\u003e \u003cp\u003e3.21 Retail Store “Four-Wall” Analysis, 102\u003c\/p\u003e \u003cp\u003e3.22 Business Process Reengineering, 108\u003c\/p\u003e \u003cp\u003eSummary and Recommendations, 109\u003c\/p\u003e \u003cp\u003e3.23 Summary, 109\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Nonbankruptcy Proceedings, 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Introduction, 111\u003c\/p\u003e \u003cp\u003eOut-of-Court Settlements, 111\u003c\/p\u003e \u003cp\u003e4.2 Nature of Proceedings, 111\u003c\/p\u003e \u003cp\u003e4.3 Importance of an Early Meeting Date, 113\u003c\/p\u003e \u003cp\u003e4.4 Preparation for the Creditors’ Meeting, 113\u003c\/p\u003e \u003cp\u003e4.5 Appointment of Creditors’ Committee, 114\u003c\/p\u003e \u003cp\u003e4.6 Duties and Functions of Creditors’ Committee, 115\u003c\/p\u003e \u003cp\u003e4.7 Interim Management, 116\u003c\/p\u003e \u003cp\u003e4.8 Committee Management, 116\u003c\/p\u003e \u003cp\u003ePreparation of a Plan of Settlement, 118\u003c\/p\u003e \u003cp\u003e4.9 Introduction, 118\u003c\/p\u003e \u003cp\u003e4.10 Conditions of Agreement, 119\u003c\/p\u003e \u003cp\u003e4.11 Out-of-Court Agreement Prior to Chapter 11 (Prepackaged Bankruptcy), 120\u003c\/p\u003e \u003cp\u003eAdvantages and Disadvantages, 121\u003c\/p\u003e \u003cp\u003e4.12 Advantages, 121\u003c\/p\u003e \u003cp\u003e4.13 Disadvantages, 121\u003c\/p\u003e \u003cp\u003eAssignment for the Benefit of Creditors (State Court), 122\u003c\/p\u003e \u003cp\u003e4.14 Introduction, 123\u003c\/p\u003e \u003cp\u003e4.15 Duties, Functions, and Procedures of Assignee, 122\u003c\/p\u003e \u003cp\u003e4.16 Discharge of Debts, 123\u003c\/p\u003e \u003cp\u003e4.17 Advantages, 124\u003c\/p\u003e \u003cp\u003e4.18 Disadvantages, 125\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Nature of Bankruptcy and Insolvency Proceedings, 127 \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOrigin, 127\u003c\/p\u003e \u003cp\u003e5.1 Introduction, 127\u003c\/p\u003e \u003cp\u003e5.2 United States, 128\u003c\/p\u003e \u003cp\u003e5.3 Insolvency and Bankruptcy Laws Today, 130\u003c\/p\u003e \u003cp\u003e5.4 Current Bankruptcy Statistics, 132\u003c\/p\u003e \u003cp\u003eNature of Insolvency, 134\u003c\/p\u003e \u003cp\u003e5.5 Types of Insolvency, 134\u003c\/p\u003e \u003cp\u003e5.6 Equity versus Bankruptcy Meanings of Insolvency, 135\u003c\/p\u003e \u003cp\u003e5.7 Determination of Assets and Liabilities, 135\u003c\/p\u003e \u003cp\u003e5.8 Valuation of Assets, 136\u003c\/p\u003e \u003cp\u003e5.9 Insolvency and the Bankruptcy Code, 136\u003c\/p\u003e \u003cp\u003e5.10 Should There Be a Threshold Test?, 137\u003c\/p\u003e \u003cp\u003e5.11 Alternatives Available to a Financially Troubled Business, 139\u003c\/p\u003e \u003cp\u003eAssignment for the Benefit of Creditors (State Court), 140\u003c\/p\u003e \u003cp\u003e5.12 Introduction, 140\u003c\/p\u003e \u003cp\u003e5.13 Duties, Functions, and Procedures of Assignee, 140\u003c\/p\u003e \u003cp\u003e5.14 Discharge of Debts, 141\u003c\/p\u003e \u003cp\u003e5.15 Advantages, 142\u003c\/p\u003e \u003cp\u003e5.16 Disadvantages, 142\u003c\/p\u003e \u003cp\u003eProvisions Common to all Proceedings, 143\u003c\/p\u003e \u003cp\u003e5.17 Introduction, 143\u003c\/p\u003e \u003cp\u003e5.18 Bankruptcy Courts, 144\u003c\/p\u003e \u003cp\u003e5.19 U.S. Trustee, 146\u003c\/p\u003e \u003cp\u003e5.20 Sovereign Immunity, 149\u003c\/p\u003e \u003cp\u003e5.21 Commencement of Cases, 154\u003c\/p\u003e \u003cp\u003e5.22 Filing and Quarterly Fees, 156\u003c\/p\u003e \u003cp\u003e5.23 Partnership, 157\u003c\/p\u003e \u003cp\u003e5.24 Meeting of Creditors, 158\u003c\/p\u003e \u003cp\u003e5.25 Meeting of Equity Security Holders, 159\u003c\/p\u003e \u003cp\u003e5.26 Adequate Protection, 159\u003c\/p\u003e \u003cp\u003e5.27 Automatic Stay, 164\u003c\/p\u003e \u003cp\u003e5.28 Use of the Estate’s Property, 174\u003c\/p\u003e \u003cp\u003e5.29 Executory Contracts and Leases, 175\u003c\/p\u003e \u003cp\u003e5.30 Utility Service, 193\u003c\/p\u003e \u003cp\u003e5.31 Allowance of Claims or Interests, 196\u003c\/p\u003e \u003cp\u003e5.32 Expense of Administration, 202\u003c\/p\u003e \u003cp\u003e5.33 Priorities, 205\u003c\/p\u003e \u003cp\u003e5.34 Exemptions, 207\u003c\/p\u003e \u003cp\u003e5.35 Discharge of Debts, 211\u003c\/p\u003e \u003cp\u003e5.36 Property of the Estate, 213\u003c\/p\u003e \u003cp\u003e5.37 Avoiding Power of Trustee, 220\u003c\/p\u003e \u003cp\u003e5.38 Reclamation and 503(b)(9) Claim, 222\u003c\/p\u003e \u003cp\u003e5.39 Preferences, 226\u003c\/p\u003e \u003cp\u003e5.40 Fraudulent Transfers, 249\u003c\/p\u003e \u003cp\u003e5.41 Postpetition Transfers, 258\u003c\/p\u003e \u003cp\u003e5.42 Postpetition Effect of Security Interest, 259\u003c\/p\u003e \u003cp\u003e5.43 Setoffs, 260\u003c\/p\u003e \u003cp\u003eChapter 7 Liquidation, 263\u003c\/p\u003e \u003cp\u003e5.44 Filing the Petition, 263\u003c\/p\u003e \u003cp\u003e5.45 Trustee, 264\u003c\/p\u003e \u003cp\u003e5.46 Creditors’ Committee, 266\u003c\/p\u003e \u003cp\u003e5.47 Partnerships, 267\u003c\/p\u003e \u003cp\u003e5.48 Treatment of Tax Liens, 269\u003c\/p\u003e \u003cp\u003e5.49 Liquidation of Assets, 269\u003c\/p\u003e \u003cp\u003e5.50 Discharge, 271\u003c\/p\u003e \u003cp\u003e5.51 Discharge of Environmental Claims, 278\u003c\/p\u003e \u003cp\u003eSIPC Liquidation, 278\u003c\/p\u003e \u003cp\u003e5.52 Introduction, 278\u003c\/p\u003e \u003cp\u003e5.53 Determination of Need of Protection, 279\u003c\/p\u003e \u003cp\u003e5.54 Appointment of Trustee, 280\u003c\/p\u003e \u003cp\u003e5.55 Court Jurisdiction, 280\u003c\/p\u003e \u003cp\u003e5.56 Powers and Duties of Trustee, 283\u003c\/p\u003e \u003cp\u003e5.57 Satisfaction of Claims, 284\u003c\/p\u003e \u003cp\u003e5.58 Prohibited Acts, 286\u003c\/p\u003e \u003cp\u003e5.59 Role of Securities and Exchange Commission, 287\u003c\/p\u003e \u003cp\u003e5.60 Compensation in an SIPA Action, 288\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Rehabilitation Proceedings Under the Bankruptcy Code, 289\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Introduction, 289\u003c\/p\u003e \u003cp\u003e6.2 Purpose of Chapter 11, 289\u003c\/p\u003e \u003cp\u003eOperating Under Chapter 11, 290\u003c\/p\u003e \u003cp\u003e6.3 Role of the Court and U.S. Trustee, 290\u003c\/p\u003e \u003cp\u003e6.4 KERPs, 292\u003c\/p\u003e \u003cp\u003e6.5 Consolidation of Chapter 11 Petitions, 296\u003c\/p\u003e \u003cp\u003e6.6 Creditors’ and Equity Holders’ Committees, 302\u003c\/p\u003e \u003cp\u003e6.7 Appointment or Election of Trustee, 309\u003c\/p\u003e \u003cp\u003e6.8 Appointment of Examiner, 314\u003c\/p\u003e \u003cp\u003e6.9 Operation of the Business, 318\u003c\/p\u003e \u003cp\u003e6.10 Automatic Stay, 319\u003c\/p\u003e \u003cp\u003e6.11 Impact of Timbers, 319\u003c\/p\u003e \u003cp\u003e6.12 Use of Collateral, 320\u003c\/p\u003e \u003cp\u003e6.13 Use of Cash Collateral, 320\u003c\/p\u003e \u003cp\u003e6.14 Obtaining Credit, 322\u003c\/p\u003e \u003cp\u003e6.15 Claims and Interests, 330\u003c\/p\u003e \u003cp\u003e6.16 Special Provisions for Partially Secured Creditors, 340\u003c\/p\u003e \u003cp\u003eDeveloping the Plan, 342\u003c\/p\u003e \u003cp\u003e6.17 Negotiating a Chapter 11 Plan, 343\u003c\/p\u003e \u003cp\u003e6.18 Exclusivity Period, 344\u003c\/p\u003e \u003cp\u003e6.21 Secured Claim Classification, 356\u003c\/p\u003e \u003cp\u003e6.22 Interest Classification, 357\u003c\/p\u003e \u003cp\u003e6.23 Content of the Plan, 357\u003c\/p\u003e \u003cp\u003e6.24 Permissible Provisions, 359\u003c\/p\u003e \u003cp\u003e6.25 Impairment of Claims, 361\u003c\/p\u003e \u003cp\u003e6.26 Disclosure Statement, 364\u003c\/p\u003e \u003cp\u003e6.27 Modification of the Plan, 373\u003c\/p\u003e \u003cp\u003eConfirmation of the Plan, 375\u003c\/p\u003e \u003cp\u003e6.28 Acceptance of the Plan, 375\u003c\/p\u003e \u003cp\u003e6.29 Confirmation Hearing, 375\u003c\/p\u003e \u003cp\u003e6.30 Confirmation Requirements, 376\u003c\/p\u003e \u003cp\u003e6.31 Best Interest of Creditors, 378\u003c\/p\u003e \u003cp\u003e6.32 Priority Treatment, 379\u003c\/p\u003e \u003cp\u003e6.33 Feasibility, 381\u003c\/p\u003e \u003cp\u003e6.34 Cramdown, 385\u003c\/p\u003e \u003cp\u003e6.35 Chapter 11 Cases Filed by Individuals, 394\u003c\/p\u003e \u003cp\u003ePostconfirmation, 397\u003c\/p\u003e \u003cp\u003e6.36 Impact, 397\u003c\/p\u003e \u003cp\u003e6.37 Distribution, 400\u003c\/p\u003e \u003cp\u003e6.38 Discharge of Debts, 401\u003c\/p\u003e \u003cp\u003e6.39 Postconfirmation Recovery, 401\u003c\/p\u003e \u003cp\u003e6.40 Securities Law Exemption, 402\u003c\/p\u003e \u003cp\u003e6.41 Final Decree, 404\u003c\/p\u003e \u003cp\u003e6.42 Conversion to Chapter 7 or Dismissal, 405\u003c\/p\u003e \u003cp\u003e6.43 Advantages and Disadvantages of Chapter 11, 407\u003c\/p\u003e \u003cp\u003eChapter 12: Adjustment of Debts of a Family Farmer with Regular Annual Income, 407\u003c\/p\u003e \u003cp\u003e6.44 Purpose, 407\u003c\/p\u003e \u003cp\u003e6.45 Requirements for Use, 408\u003c\/p\u003e \u003cp\u003e6.46 Operation of Farm, 408\u003c\/p\u003e \u003cp\u003e6.47 Chapter 12 Plan, 409\u003c\/p\u003e \u003cp\u003eChapter 13: Adjustment of Debts of an Individual with Regular Income, 411\u003c\/p\u003e \u003cp\u003e6.48 Nature, 411\u003c\/p\u003e \u003cp\u003e6.49 Filing of Petition, 411\u003c\/p\u003e \u003cp\u003e6.50 Operation of Business, 413\u003c\/p\u003e \u003cp\u003e6.51 The Plan, 413\u003c\/p\u003e \u003cp\u003e6.52 Discharge of Debts, 417\u003c\/p\u003e \u003cp\u003e6.53 Use of Chapter 13 by Business, 418\u003c\/p\u003e \u003cp\u003e6.54 Chapter 15: Ancillary and Other Cross Border Cases, 419\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Retention of the Financial Advisor and Fees, 427\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Introduction, 427\u003c\/p\u003e \u003cp\u003eRetention of the Financial Advisor, 428\u003c\/p\u003e \u003cp\u003e7.2 The Accountant or Financial Advisor’s Role in the Proceedings, 428\u003c\/p\u003e \u003cp\u003e7.3 Obtaining the Engagement, 428\u003c\/p\u003e \u003cp\u003e7.4 Retention Procedure, 429\u003c\/p\u003e \u003cp\u003e7.5 Creditors’ Committee, 432\u003c\/p\u003e \u003cp\u003e7.6 Source of Payment, 433\u003c\/p\u003e \u003cp\u003e7.7 Affidavit of Proposed Financial Advisor, 434\u003c\/p\u003e \u003cp\u003e7.8 Survey of Work to Be Performed, 440\u003c\/p\u003e \u003cp\u003e7.9 Application for Retention, 441\u003c\/p\u003e \u003cp\u003e7.10 Retention Order, 444\u003c\/p\u003e \u003cp\u003e7.11 Retention on a Retainer Basis, 444\u003c\/p\u003e \u003cp\u003e7.12 Deviations from Retention Order, 445\u003c\/p\u003e \u003cp\u003e7.13 Accountants as Consultants or Financial Advisors, 445\u003c\/p\u003e \u003cp\u003e7.14 Prepetition Retention, 446\u003c\/p\u003e \u003cp\u003e7.15 Retention Procedure—Informal, 446\u003c\/p\u003e \u003cp\u003e7.16 Accountants as Quasi-Officers of the Court, 447\u003c\/p\u003e \u003cp\u003eDetermination of Financial Advisor’s Fees, 447\u003c\/p\u003e \u003cp\u003e7.17 Introduction, 447\u003c\/p\u003e \u003cp\u003e7.18 SEC May Object to Fees, 448\u003c\/p\u003e \u003cp\u003e7.19 Compensation Reviewed by U.S. Trustee, 449\u003c\/p\u003e \u003cp\u003e7.20 Compensation Must Be Approved by the Court, 449\u003c\/p\u003e \u003cp\u003e7.21 Factors to Consider When Estimating Fees, 453\u003c\/p\u003e \u003cp\u003e7.22 Compensation Based on Comparable Services, 458\u003c\/p\u003e \u003cp\u003e7.23 Prepetition Fees, 460\u003c\/p\u003e \u003cp\u003eTime Records, 461\u003c\/p\u003e \u003cp\u003e7.24 Requirements, 461\u003c\/p\u003e \u003cp\u003ePetition for Fee Allowance, 462\u003c\/p\u003e \u003cp\u003e7.25 Court Discretion in Ruling on Fees, 462\u003c\/p\u003e \u003cp\u003e7.26 Procedure for Filing the Petition, 465\u003c\/p\u003e \u003cp\u003e7.27 Payment for Services Rendered, 466\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Accounting and Financial Services for Debtors-in-Possession or Trustee, 469\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNature of Accounting Services, 469\u003c\/p\u003e \u003cp\u003e8.1 Introduction, 469\u003c\/p\u003e \u003cp\u003e8.2 Parties Retaining Accountants and Financial Advisors, 469\u003c\/p\u003e \u003cp\u003e8.3 Summary of Services, 471\u003c\/p\u003e \u003cp\u003ePrefiling Stage of Chapter Proceedings, 472\u003c\/p\u003e \u003cp\u003e8.4 Importance of Early Meetings, 472\u003c\/p\u003e \u003cp\u003e8.5 Advice on Selection of Counsel, 473\u003c\/p\u003e \u003cp\u003e8.6 Conference with Attorney, 473\u003c\/p\u003e \u003cp\u003e8.7 Determine Alternatives, 474\u003c\/p\u003e \u003cp\u003e8.8 Prebankruptcy Planning, 475\u003c\/p\u003e \u003cp\u003eAccounting\/Financial Reporting Requirements, 481\u003c\/p\u003e \u003cp\u003e8.9 Introduction, 481\u003c\/p\u003e \u003cp\u003e8.10 Affidavits in Support of Petition, 483\u003c\/p\u003e \u003cp\u003e8.11 Supporting Schedules, 484\u003c\/p\u003e \u003cp\u003e8.12 Statement of Financial Affairs, 487\u003c\/p\u003e \u003cp\u003e8.13 Monthly Reporting, 488\u003c\/p\u003e \u003cp\u003e8.14 U.S. Trustee’s Requirements, 489\u003c\/p\u003e \u003cp\u003e8.15 Operating Statements, 490\u003c\/p\u003e \u003cp\u003e8.16 SEC Reporting in Chapter 11, 492\u003c\/p\u003e \u003cp\u003e8.17 Bankruptcy Claims Management Process, 495\u003c\/p\u003e \u003cp\u003eFormulation of a Plan of Reorganization, 499\u003c\/p\u003e \u003cp\u003e8.18 Introduction, 499\u003c\/p\u003e \u003cp\u003e8.19 Liquidation Value of Assets, 500\u003c\/p\u003e \u003cp\u003e8.20 Projection of Future Operations, 501\u003c\/p\u003e \u003cp\u003e8.21 Reorganization Value, 501\u003c\/p\u003e \u003cp\u003e8.22 Pro Forma Balance Sheet, 502\u003c\/p\u003e \u003cp\u003e8.23 Formulating an Amended Plan, 503\u003c\/p\u003e \u003cp\u003e8.24 Disclosure Statement, 503\u003c\/p\u003e \u003cp\u003eAccountant and Financial Advisor as Examiner, 504\u003c\/p\u003e \u003cp\u003e8.25 Nature of Service, 504\u003c\/p\u003e \u003cp\u003eAdditional or Other Accounting Services, 505\u003c\/p\u003e \u003cp\u003e8.26 Introduction, 505\u003c\/p\u003e \u003cp\u003e8.27 Normal Accounting Services, 505\u003c\/p\u003e \u003cp\u003e8.28 Special Investigation, 505\u003c\/p\u003e \u003cp\u003e8.29 Accounting Services and the Granting of New Credit, 507\u003c\/p\u003e \u003cp\u003eProfessional Conduct of Accountants and Financial Advisors, 508\u003c\/p\u003e \u003cp\u003e8.30 Introduction, 508\u003c\/p\u003e \u003cp\u003e8.31 Personal Liability: Preparation of Financial Statements, 508\u003c\/p\u003e \u003cp\u003e8.32 Professional Conduct of Debtor’s Accountant— Toward Client, 509\u003c\/p\u003e \u003cp\u003e8.33 Professional Conduct of Debtor’s Accountant— Toward Creditors’ Accountant\/Advisors, 510\u003c\/p\u003e \u003cp\u003e8.34 Direct Liability to Third Parties, 511\u003c\/p\u003e \u003cp\u003e8.35 Other Professional Ethical Factors, 511\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Other Financial Advisory Services for Debtors-in-Possession or Trustee, 513\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Introduction, 513\u003c\/p\u003e \u003cp\u003eManagement Advisory Services, 513\u003c\/p\u003e \u003cp\u003e9.2 Introduction, 513\u003c\/p\u003e \u003cp\u003e9.3 Long-Range Business Plan, 514\u003c\/p\u003e \u003cp\u003e9.4 Financial Projections, 516\u003c\/p\u003e \u003cp\u003eInterim Management Services, 516\u003c\/p\u003e \u003cp\u003e9.5 Introduction, 516\u003c\/p\u003e \u003cp\u003e9.6 Retention, 517\u003c\/p\u003e \u003cp\u003e9.7 Billing, 517\u003c\/p\u003e \u003cp\u003eBalloting and Noticing Agent Services, 517\u003c\/p\u003e \u003cp\u003e9.8 Noticing Overview, 517\u003c\/p\u003e \u003cp\u003e9.9 Solicitation Overview, 518\u003c\/p\u003e \u003cp\u003e9.10 Pre-Balloting Services, 519\u003c\/p\u003e \u003cp\u003e9.11 Plan Classes, 519\u003c\/p\u003e \u003cp\u003e9.12 Solicitation Process, 520\u003c\/p\u003e \u003cp\u003e9.13 Plan Information and Ballots, 520\u003c\/p\u003e \u003cp\u003eChapter 7 and Chapter 11 Liquidations, 521\u003c\/p\u003e \u003cp\u003e9.14 Introduction, 521\u003c\/p\u003e \u003cp\u003e9.15 Items Requiring Immediate Attention, 521\u003c\/p\u003e \u003cp\u003e9.16 Performance of Audits and Other Special Investigations, 522\u003c\/p\u003e \u003cp\u003e9.17 SIPC Liquidation, 522\u003c\/p\u003e \u003cp\u003ePostconfirmation Services, 523\u003c\/p\u003e \u003cp\u003e9.18 Overview, 523\u003c\/p\u003e \u003cp\u003e9.19 Litigation Trusts, 523\u003c\/p\u003e \u003cp\u003e9.20 Tort Trusts, 523\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Accounting and Financial Services for the Creditors’ Committee, 525\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNature of Creditors’ Committee, 525\u003c\/p\u003e \u003cp\u003e10.1 Introduction, 525\u003c\/p\u003e \u003cp\u003e10.2 Creditors’ Committees, 526\u003c\/p\u003e \u003cp\u003e10.3 Directing Committee Activities, 534\u003c\/p\u003e \u003cp\u003e10.4 Data, 535\u003c\/p\u003e \u003cp\u003e10.5 Bargaining Process, 535\u003c\/p\u003e \u003cp\u003e10.6 Role of Creditors’ Financial Advisor in the Bargaining Process, 536\u003c\/p\u003e \u003cp\u003e10.7 Form of Consideration, 537\u003c\/p\u003e \u003cp\u003eMonitoring Debtor’s Activities, 537\u003c\/p\u003e \u003cp\u003e10.8 Introduction, 537\u003c\/p\u003e \u003cp\u003e10.9 Areas Requiring Immediate Attention, 537\u003c\/p\u003e \u003cp\u003e10.10 Importance of Speed, 538\u003c\/p\u003e \u003cp\u003e10.11 Establishment of Proper Controls, 539\u003c\/p\u003e \u003cp\u003e10.12 Investigation of Causes of Failure and Development of Controls to Limit Further Impairment of Assets, 540\u003c\/p\u003e \u003cp\u003e10.13 Review of Receipts and Disbursements Control, 540\u003c\/p\u003e \u003cp\u003e10.14 Review of Debtor’s Accounting System, 541\u003c\/p\u003e \u003cp\u003e10.15 “Insider” Problem, 542\u003c\/p\u003e \u003cp\u003e10.16 Review of Weekly\/Monthly Reporting, 544\u003c\/p\u003e \u003cp\u003eSpecial Investigations and Reviews, 545\u003c\/p\u003e \u003cp\u003e10.17 Investigation of Debtor’s Books and Records, 545\u003c\/p\u003e \u003cp\u003e10.18 Review of Debtor’s Transactions, 546\u003c\/p\u003e \u003cp\u003e10.19 Evaluation of Debtor’s Projections, 546\u003c\/p\u003e \u003cp\u003e10.20 Review of Plan of Reorganization and Disclosure Statement, 547\u003c\/p\u003e \u003cp\u003eOther Accounting Services, 550\u003c\/p\u003e \u003cp\u003e10.21 Introduction, 550\u003c\/p\u003e \u003cp\u003e10.22 Secured Creditor, 550\u003c\/p\u003e \u003cp\u003e10.23 Major Stockholder or Equity Committee, 550\u003c\/p\u003e \u003cp\u003e10.24 Responsibilities of Creditors’ Financial Advisor, 551\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Valuation of a Business in Bankruptcy Proceedings, 553 \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eImportance of Valuation, 553\u003c\/p\u003e \u003cp\u003e11.1 Introduction, 553\u003c\/p\u003e \u003cp\u003e11.2 Adequate Protection under Section 361, 554\u003c\/p\u003e \u003cp\u003e11.3 Claims Determination, 558\u003c\/p\u003e \u003cp\u003e11.4 Recovery Action, 561\u003c\/p\u003e \u003cp\u003e11.5 Chapter 13 Secured Claims, 567\u003c\/p\u003e \u003cp\u003e11.6 Determining Best Interest of Creditors and Stockholders under Chapter 11, 568\u003c\/p\u003e \u003cp\u003e11.7 Determining Whether a Plan Is Fair and Equitable to a Dissenting Class in Chapter 11, 569\u003c\/p\u003e \u003cp\u003e11.8 Determining Feasibility, 573\u003c\/p\u003e \u003cp\u003e11.9 Codification of Value, 573\u003c\/p\u003e \u003cp\u003eLiquidation Values, 575\u003c\/p\u003e \u003cp\u003e11.10 Introduction, 575\u003c\/p\u003e \u003cp\u003e11.11 Approaches, 577\u003c\/p\u003e \u003cp\u003eGoing-Concern (Reorganization) Valuation, 578\u003c\/p\u003e \u003cp\u003e11.12 Introduction, 578\u003c\/p\u003e \u003cp\u003e11.13 Cost of Capital, 579\u003c\/p\u003e \u003cp\u003e11.14 Appraisal Value or Replacement Cost, 588\u003c\/p\u003e \u003cp\u003e11.15 Market Value of Securities, 588\u003c\/p\u003e \u003cp\u003e11.16 Income Approach (Discounted Cash Flows), 589\u003c\/p\u003e \u003cp\u003e11.17 Market Approach, 596\u003c\/p\u003e \u003cp\u003e11.18 Asset-Based (Cost) Approach, 607\u003c\/p\u003e \u003cp\u003e11.19 Discounts and Premiums, 612\u003c\/p\u003e \u003cp\u003e11.20 Synthesizing Results, 618\u003c\/p\u003e \u003cp\u003e11.21 Determining Liabilities, 622\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART THREE INVESTIGATION AND REPORTS\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Special Areas of Inquiry, 627\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNature of Investigation, 627\u003c\/p\u003e \u003cp\u003e12.1 Introduction, 627\u003c\/p\u003e \u003cp\u003e12.2 Objectives, 628\u003c\/p\u003e \u003cp\u003e12.3 Balance Sheet Emphasis, 629\u003c\/p\u003e \u003cp\u003e12.4 Modifications of Investigation, 629\u003c\/p\u003e \u003cp\u003eIntroduction to the Special Areas of Inquiry, 631\u003c\/p\u003e \u003cp\u003e12.5 Irregularities, 631\u003c\/p\u003e \u003cp\u003e12.6 Fraud, 633\u003c\/p\u003e \u003cp\u003e12.7 Proof of Fraud, 634\u003c\/p\u003e \u003cp\u003e12.8 Auditor’s Responsibility for the Detection of Irregularities, 634\u003c\/p\u003e \u003cp\u003e12.9 Methods of Discovering Irregularities and Fraud, 640\u003c\/p\u003e \u003cp\u003eAvailability of Books and Records, 641\u003c\/p\u003e \u003cp\u003e12.10 Locating and Obtaining Possession of the Records, 641\u003c\/p\u003e \u003cp\u003e12.11 Scheduling the Books; Procedure Followed for Missing Records, 642\u003c\/p\u003e \u003cp\u003eFraudulent Transfers, 642\u003c\/p\u003e \u003cp\u003e12.12 Transfer of Assets without Fair Consideration, 642\u003c\/p\u003e \u003cp\u003e12.13 Sales of Assets Below Market Values, 643\u003c\/p\u003e \u003cp\u003e12.14 Transfer of Assets to Insiders, Officers, Employees, Relatives, and Others, 643\u003c\/p\u003e \u003cp\u003eConcealment of Assets, 648\u003c\/p\u003e \u003cp\u003e12.15 Merchandise, 648\u003c\/p\u003e \u003cp\u003e12.16 Cash Surrender Value of Officers’ Life Insurance Policies, 650\u003c\/p\u003e \u003cp\u003e12.17 Deposits and Security, 651\u003c\/p\u003e \u003cp\u003e12.18 Investments and Real Estate, 651\u003c\/p\u003e \u003cp\u003e12.19 Machinery and Equipment, 652\u003c\/p\u003e \u003cp\u003eFalse Entries and Statements, 652\u003c\/p\u003e \u003cp\u003e12.20 Mutilation and Alteration of Records, 652\u003c\/p\u003e \u003cp\u003e12.21 Concealment and Destruction of Records, 653\u003c\/p\u003e \u003cp\u003e12.22 Forgery, 653\u003c\/p\u003e \u003cp\u003e12.23 Issuance of False Statements, 653\u003c\/p\u003e \u003cp\u003eFinancing Irregularities, 657\u003c\/p\u003e \u003cp\u003e12.24 Receivables, 657\u003c\/p\u003e \u003cp\u003e12.25 Inventory, 659\u003c\/p\u003e \u003cp\u003ePreferential Payments, 660\u003c\/p\u003e \u003cp\u003e12.26 Introduction, 660\u003c\/p\u003e \u003cp\u003e12.27 Recovery of Preferential Payments, 661\u003c\/p\u003e \u003cp\u003e12.28 Search for Preferential Payments, 662\u003c\/p\u003e \u003cp\u003e12.29 Inflated Claims, 663\u003c\/p\u003e \u003cp\u003eApplicability of Generally Accepted Auditing Standards, 664\u003c\/p\u003e \u003cp\u003e12.30 Auditing Standards, 664\u003c\/p\u003e \u003cp\u003e12.31 Auditing Procedures, 665\u003c\/p\u003e \u003cp\u003e12.32 Audit Program Guide, 666\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Financial Reporting During Bankruptcy, 667\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Introduction, 667\u003c\/p\u003e \u003cp\u003eForm and Substance of Financial Statements, 668\u003c\/p\u003e \u003cp\u003e13.2 Financial Data Required at the Date of Filing of Petition in Chapter 11, 668\u003c\/p\u003e \u003cp\u003e13.3 Balance Sheet, 668\u003c\/p\u003e \u003cp\u003e13.4 Rejected Leases, 677\u003c\/p\u003e \u003cp\u003e13.5 Warranty Reserves and Similar Liabilities, 678\u003c\/p\u003e \u003cp\u003e13.6 Pension Liability, 679\u003c\/p\u003e \u003cp\u003e13.7 Pro Forma Statement of Financial Position, 681\u003c\/p\u003e \u003cp\u003e13.8 Notes to Statements, 681\u003c\/p\u003e \u003cp\u003e13.9 Statement of Operations, 682\u003c\/p\u003e \u003cp\u003e13.10 Statement of Cash Flows, 687\u003c\/p\u003e \u003cp\u003e13.11 Statement of Capital Deficiency, 689\u003c\/p\u003e \u003cp\u003e13.12 Statement of Affairs, 689\u003c\/p\u003e \u003cp\u003e13.13 Special-Purpose Statements, 693\u003c\/p\u003e \u003cp\u003eAccounting for a Chapter 11 Filing, 694\u003c\/p\u003e \u003cp\u003e13.14 Use of New Accounts, 694\u003c\/p\u003e \u003cp\u003e13.15 Illustration of Entries, 696\u003c\/p\u003e \u003cp\u003e13.16 Accrued Interest, 697\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Reporting Results of the Plan, 699\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Introduction, 699\u003c\/p\u003e \u003cp\u003eChapter 11, 699\u003c\/p\u003e \u003cp\u003e14.2 Requirements for Fresh-Start Reporting, 699\u003c\/p\u003e \u003cp\u003e14.3 Allocation of Reorganization Value, 701\u003c\/p\u003e \u003cp\u003e14.4 Disclosures, 704\u003c\/p\u003e \u003cp\u003e14.5 Recording the Adoption of Fresh-Start Reporting, 705\u003c\/p\u003e \u003cp\u003e14.6 Deferred Taxes, 708\u003c\/p\u003e \u003cp\u003e14.7 Disclosure Statement, 710\u003c\/p\u003e \u003cp\u003e14.8 Subsequent Events and Preconfirmation Contingencies, 711\u003c\/p\u003e \u003cp\u003e14.9 Reporting by Entities Not Qualifying for Fresh Start, 714\u003c\/p\u003e \u003cp\u003e14.10 Comparison with Prior Periods, 714\u003c\/p\u003e \u003cp\u003eOut-of-Court Workouts, 715\u003c\/p\u003e \u003cp\u003e14.11 Introduction, 715\u003c\/p\u003e \u003cp\u003e14.12 Debt Discharge under FASB Statement No. 15, 715\u003c\/p\u003e \u003cp\u003e14.13 Reporting of Income from Debt Discharge When FASB Statement No. 15 Is Not Applicable, 723\u003c\/p\u003e \u003cp\u003e14.14 Determining the Amount of Income from Debt Discharge When FASB Statement No. 15 Is Not Applicable, 724\u003c\/p\u003e \u003cp\u003eQuasi-Reorganization, 724\u003c\/p\u003e \u003cp\u003e14.15 Introduction, 724\u003c\/p\u003e \u003cp\u003e14.16 Adjustment of Equity Section Only (“Mini Quasi”), 725\u003c\/p\u003e \u003cp\u003e14.17 Adjustment of All Accounts, 726\u003c\/p\u003e \u003cp\u003e14.18 Conditions Necessary for Quasi-Reorganization, 729\u003c\/p\u003e \u003cp\u003e14.19 Quasi-Reorganization and the SEC, 729\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Reporting on an Insolvent Company, 731\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Introduction, 731\u003c\/p\u003e \u003cp\u003eLitigation Services, 734\u003c\/p\u003e \u003cp\u003e15.2 Application of Litigation Services to Bankruptcy, 734\u003c\/p\u003e \u003cp\u003e15.3 Disclosure Requirements, 736\u003c\/p\u003e \u003cp\u003e15.4 Operating Reports, 736\u003c\/p\u003e \u003cp\u003e15.5 Investigative Services, 737\u003c\/p\u003e \u003cp\u003e15.6 Financial Projections, 738\u003c\/p\u003e \u003cp\u003eAccountant’s Report: Nonlitigation Services, 739\u003c\/p\u003e \u003cp\u003e15.7 Introduction, 739\u003c\/p\u003e \u003cp\u003e15.8 Limitations on Scope, 740\u003c\/p\u003e \u003cp\u003e15.9 Unique Disclosures in Report, 741\u003c\/p\u003e \u003cp\u003e15.10 Full Disclosure, 742\u003c\/p\u003e \u003cp\u003e15.11 Accountant’s Responsibility for Disclosure, 743\u003c\/p\u003e \u003cp\u003eGoing-Concern Concept, 743\u003c\/p\u003e \u003cp\u003e15.12 Introduction, 743\u003c\/p\u003e \u003cp\u003e15.13 Going-Concern Concept Defined, 744\u003c\/p\u003e \u003cp\u003e15.14 Absence of Evidence to the Contrary, 745\u003c\/p\u003e \u003cp\u003e15.15 Auditor’s Responsibility for Evaluation, 746\u003c\/p\u003e \u003cp\u003e15.16 Audit Procedures, 746\u003c\/p\u003e \u003cp\u003e15.17 Consideration of Management’s Plans, 747\u003c\/p\u003e \u003cp\u003eTypes of Opinions, 748\u003c\/p\u003e \u003cp\u003e15.18 Unqualified Opinion, 748\u003c\/p\u003e \u003cp\u003e15.19 Qualified Opinion, 749\u003c\/p\u003e \u003cp\u003e15.20 Disclaimer of Opinion, 750\u003c\/p\u003e \u003cp\u003e15.21 Adverse Opinion, 750\u003c\/p\u003e \u003cp\u003e15.22 Reports Relating to the Results of Applying Agreed-On Procedures, 751\u003c\/p\u003e \u003cp\u003eUnaudited Financial Statements, 753\u003c\/p\u003e \u003cp\u003e15.23 Introduction, 753\u003c\/p\u003e \u003cp\u003e15.24 Public Entity Report, 753\u003c\/p\u003e \u003cp\u003e15.25 Nonpublic Entity Reports, 756\u003c\/p\u003e \u003cp\u003eReporting on a Liquidation of the Debtor, 762\u003c\/p\u003e \u003cp\u003e15.26 Introduction, 762\u003c\/p\u003e \u003cp\u003e15.27 Single-Year Report, 763\u003c\/p\u003e \u003cp\u003e15.28 Comparative Financial Statements, 764\u003c\/p\u003e \u003cp\u003e15.29 Solvency Letters, 764\u003c\/p\u003e \u003cp\u003e15.30 Reports on Prospective Financial Statements, 765\u003c\/p\u003e \u003cp\u003e15.31 Liquidation Analysis, 765\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Tax Awareness, 767\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Introduction, 767\u003c\/p\u003e \u003cp\u003eNotification of Proceedings and Filing of Returns, 767\u003c\/p\u003e \u003cp\u003e16.2 Notice to Governmental Agencies, 767\u003c\/p\u003e \u003cp\u003e16.3 Responsibility for Filing Income Tax Returns: Corporations, 768\u003c\/p\u003e \u003cp\u003e16.4 Responsibility for Filing Income Tax Returns and Other Information Required by the Bankruptcy Court: Individual and Partnership, 769\u003c\/p\u003e \u003cp\u003eSpecial Rules for Individuals, 774\u003c\/p\u003e \u003cp\u003e16.5 Introduction, 774\u003c\/p\u003e \u003cp\u003e16.6 Income and Deductions, 774\u003c\/p\u003e \u003cp\u003e16.7 Transfers between Debtor and Estate, 775\u003c\/p\u003e \u003cp\u003e16.8 Attribute Carryover to Estate, 778\u003c\/p\u003e \u003cp\u003e16.9 Attribute Carryover to Debtor, 778\u003c\/p\u003e \u003cp\u003e16.10 Carryback of Net Operating Losses and Other Credits Incurred Subsequent to Commencement of Case, 779\u003c\/p\u003e \u003cp\u003e16.11 Administrative Expenses, 779\u003c\/p\u003e \u003cp\u003e16.12 Change in Accounting Period, 782\u003c\/p\u003e \u003cp\u003eMinimization of Tax and Related Payments, 782\u003c\/p\u003e \u003cp\u003e16.13 Estimated Taxes, 782\u003c\/p\u003e \u003cp\u003e16.14 Prior Year Taxes, 782\u003c\/p\u003e \u003cp\u003e16.15 Pension Funding Requirements, 782\u003c\/p\u003e \u003cp\u003eTreatment of Income During Bankruptcy Period, 782\u003c\/p\u003e \u003cp\u003e16.16 Income Required to Be Reported, 782\u003c\/p\u003e \u003cp\u003e16.17 Deductions Allowed, 783\u003c\/p\u003e \u003cp\u003e16.18 Discharge of Debts, 784\u003c\/p\u003e \u003cp\u003e16.19 Debt Discharge by Farmers, 788\u003c\/p\u003e \u003cp\u003e16.20 Cancellation of Real Property Business Indebtedness, 789\u003c\/p\u003e \u003cp\u003e16.21 Basis Adjustment, 790\u003c\/p\u003e \u003cp\u003e16.22 Debt Discharge by Partnerships, 793\u003c\/p\u003e \u003cp\u003e16.23 Debt Discharge by S Corporations, 793\u003c\/p\u003e \u003cp\u003e16.24 Exchange of Stock for Debt, 793\u003c\/p\u003e \u003cp\u003e16.25 Purchase-Money Debt Reduction, 794\u003c\/p\u003e \u003cp\u003e16.26 Tax Planning, 794\u003c\/p\u003e \u003cp\u003eCorporate Reorganizations, 794\u003c\/p\u003e \u003cp\u003e16.27 Introduction, 794\u003c\/p\u003e \u003cp\u003e16.28 Tax-Free G Reorganization, 795\u003c\/p\u003e \u003cp\u003e16.29 Personal Holding Company, 797\u003c\/p\u003e \u003cp\u003eAvailability of New Operating Losses, 797\u003c\/p\u003e \u003cp\u003e16.30 Introduction, 797\u003c\/p\u003e \u003cp\u003e16.31 Section 382 Limitation, 798\u003c\/p\u003e \u003cp\u003e16.32 Special Rules for Corporations in Bankruptcy, 799\u003c\/p\u003e \u003cp\u003e16.33 Other Provisions, 800\u003c\/p\u003e \u003cp\u003eEffects on Earnings and Profits, 801\u003c\/p\u003e \u003cp\u003e16.34 Introduction, 801\u003c\/p\u003e \u003cp\u003e16.35 Account Adjustment, 801\u003c\/p\u003e \u003cp\u003e16.36 Earnings and Profits Carryover, 801\u003c\/p\u003e \u003cp\u003eAdministrative Aspects of Taxes, 802\u003c\/p\u003e \u003cp\u003e16.37 Tax Priorities, 802\u003c\/p\u003e \u003cp\u003e16.38 Tax Penalty, 809\u003c\/p\u003e \u003cp\u003e16.39 Interest, 810\u003c\/p\u003e \u003cp\u003e16.40 Erroneous Refunds or Credits, 810\u003c\/p\u003e \u003cp\u003e16.41 Chapter 11 Reorganization, 810\u003c\/p\u003e \u003cp\u003e16.42 Chapters 12 and 13 Adjustments, 811\u003c\/p\u003e \u003cp\u003e16.43 Tax Discharge, 811\u003c\/p\u003e \u003cp\u003e16.44 Tax Preferences, 813\u003c\/p\u003e \u003cp\u003e16.45 Tax Procedures, 813\u003c\/p\u003e \u003cp\u003e16.46 State and Local Tax Provisions, 814\u003c\/p\u003e \u003cp\u003eAppendix: Statement of Position 815\u003c\/p\u003e \u003cp\u003eStatutes Citations 849\u003c\/p\u003e \u003cp\u003eCase Index 855\u003c\/p\u003e \u003cp\u003eName Index 865\u003c\/p\u003e \u003cp\u003eSubject Index 867\u003c\/p\u003e \u003cp\u003e \u003c\/p\u003e \u003cb\u003eGrant W. Newton, CPA, CIRA, CMA\u003c\/b\u003e, is Professor of Accounting at the Graziadio School of Business and Management at Pepperdine University and is Executive Director of the Association of Insolvency and Restructuring Advisors. He is the author of \u003ci\u003eCorporate Bankruptcy: Tools, Strategies, and Alternatives\u003c\/i\u003e (2003) and \u003ci\u003eBankruptcy and Insolvency Taxation\u003c\/i\u003e (2005), both from Wiley. His articles have appeared in a large number of professional periodicals. He received his PhD from New York University, Master's from the University of Alabama, and BS from the University of North Alabama.","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988788003045,"sku":"NP9780471787617","price":180.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780471787617.jpg?v=1761781592","url":"https:\/\/k12savings.com\/es\/products\/bankruptcy-and-insolvency-accounting-volume-1-isbn-9780471787617","provider":"K12savings","version":"1.0","type":"link"}